Korean Air is switching to emergency management mode due to rising fuel prices.
The company is planning to ensure economic stability by reducing internal costs.
Korean Air announced that it has entered an emergency management mode to maintain financial stability amid a sharp increase in aviation fuel prices and global economic fluctuations. This was reported by the BBC.
It is noted that this decision was made against the backdrop of the ongoing war between the US-Israel and Iran and its impact on the global economy.
A representative of the national airline stated on Tuesday that the company will implement measures to reduce internal costs and through this, plans to ensure stability in the face of rising fuel prices and global economic fluctuations.
According to recent data, since February 28, oil prices have risen by more than 50 percent, and aviation fuel prices have doubled. This situation is forcing airlines to implement emergency measures to protect their businesses.
According to Tan Chi Siang, a representative of the consulting company PwC Singapore, airlines have implemented similar emergency measures during crises like the COVID-19 pandemic. Especially Asian airlines are suffering comprehensive losses due to rising global oil prices and regional aviation fuel shortages, and are therefore forced to take measures.
Through these measures, Korean Air aims not only to maintain financial stability but also to mitigate the negative impact of fuel price increases and global economic instability.
